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Movie Industry Demand and Theater Availability

  • Tin Cheuk LeungEmail author
  • Shi Qi
  • Jia Yuan
Article
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Abstract

Consumers can only choose to see a movie if it is available in theaters. Explicitly taking into account movie theater availability, we estimate a structural model of movie demand with the use of U.S. movie data from 1995 to 2017. Estimation results indicate that the impact of theater availability on movie demand is both statistically and economically significant. We also find that movie budget predictions based on the model that incorporates theater availability is more consistent with the data, while the model that ignores theater availability on average over-predict production budgets.

Keywords

Movie demand Theater availability Demand estimation 

Notes

Acknowledgements

We thank the editor and two anonymous referees for making our paper much better. We thank the participants for their useful comments in IIOC. The usual disclaimer applies.

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Wake Forest UniversityWinston-SalemUSA
  2. 2.College of William and MaryWilliamsburgUSA
  3. 3.University of MacauZhuhaiChina

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